When it comes to Social Security, the claim age is one of the most important decisions you’ll ever make, and it can significantly impact the amount of money you’ll receive during retirement.
In 2025, many retirees still don’t understand how the age at which they claim benefits affects their payout, which can result in missing out on substantial additional income.
The Average Social Security Benefit for Retirees at Different Ages
The Social Security Administration (SSA) tracks benefits by age and provides detailed data on the average monthly benefits for retired workers at different ages. This data shows how claiming earlier or later can make a big difference.
Average Monthly Social Security Benefit for Retired Workers (2025)
| Age | Average Monthly Benefit | Average Annual Benefit |
|---|---|---|
| 62 | $1,377 | $16,524 |
| 63 | $1,392 | $16,705 |
| 64 | $1,447 | $17,369 |
| 65 | $1,613 | $19,355 |
| 66 | $1,809 | $21,705 |
| 67 | $1,963 | $23,552 |
| 68 | $2,004 | $24,045 |
| 69 | $2,052 | $24,629 |
| 70 | $2,188 | $26,250 |
As seen in the table, Social Security benefits tend to increase with age, with a significant jump between claiming at age 62 and age 70. The difference between the average monthly benefit at age 62 ($1,377) and age 70 ($2,188) is a $811 increase per month, or $9,732 more annually.
Why the Claim Age Matters: The Impact on Your Benefits
When you claim Social Security earlier than your Full Retirement Age (FRA), your benefits are permanently reduced. For example, if you start claiming benefits at age 62, the SSA applies a penalty that reduces your monthly payment.
On the other hand, if you wait until age 70 to claim, you will receive the maximum possible payout for your situation.
How the SSA Calculates Your Benefits
- Earnings History: The SSA looks at your 35 highest-earning years to calculate your Social Security benefits, adjusting for inflation.
- AIME (Average Indexed Monthly Earnings): Your indexed earnings are averaged, and this value is used to determine your monthly benefits.
- PIA (Primary Insurance Amount): The PIA is the amount you’ll receive at your Full Retirement Age (FRA).
- Benefit Adjustments: If you claim before FRA, your benefit is reduced. If you delay claiming until after FRA, your benefit increases by 8% per year until age 70.
How Claiming Early or Late Affects Your Benefits
Early Claiming (before FRA): If you claim before FRA, your benefits are reduced for each month before you reach FRA. For instance, if your FRA is 66, and you claim at 62, your benefit is reduced to 75% of your PIA. This reduction is permanent.
Delayed Claiming (after FRA): If you delay claiming past FRA, your benefits increase by up to 8% per year. For instance, a worker who delays claiming until 70 could receive 132% of their PIA.
Impact of Birth Year on Social Security Benefits
The table below illustrates how your Full Retirement Age (FRA) and benefits at ages 62 and 70 differ based on your birth year:
| Birth Year | Full Retirement Age (FRA) | Benefit at Age 62 | Benefit at Age 70 |
|---|---|---|---|
| 1943-1954 | 66 | 75% | 132% |
| 1955 | 66 and 2 months | 74.2% | 130.6% |
| 1956 | 66 and 4 months | 73.3% | 129.3% |
| 1957 | 66 and 6 months | 72.5% | 128% |
| 1958 | 66 and 8 months | 71.7% | 126.6% |
| 1959 | 66 and 10 months | 70.8% | 125.3% |
| 1960 and later | 67 | 70% | 124% |
For example, someone born in 1960 or later can increase their benefit by 77% by claiming at age 70 instead of age 62.
The $23,760 Social Security Bonus Most Retirees Overlook
One of the most important things retirees often overlook is the Social Security bonus available by delaying benefits until age 70. Claiming at age 70 instead of age 62 can increase your monthly payout by an average of $811 (or $9,732 annually).
This “bonus” could add up to $23,760 over the span of a 20-year retirement, making it a valuable decision for those who can afford to wait.
Plan Carefully for Your Retirement
Understanding the impact of your claim age on Social Security benefits is crucial for a secure retirement. Although the SSA will continue to be an important source of income, delaying your claim until age 70 may significantly increase the benefits you receive.
